GTA services under forward charge mechanism
Query (Issue) Started By: – SUSHIL GOYAL Dated:- 11-3-2018 Last Reply Date:- 22-3-2018 Goods and Services Tax – GST
Got 6 Replies
GST
GST @ 6% on GTA services is allowed to be paid on forward charge basis provided that the goods transport
agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it.
I have a query – Is a person registered under two States can opt for paying GST on GTA Services on reverse charge basis, if it has opted for payment of tax on forward charge basis in one State?
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
In my opinion if GTA pays 6% gst from one state then
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12%..No other condition is appearing in this notification.
Reply By SUSHIL GOYAL:
The Reply:
But relevant notification refers to Goods Transport Agency, which is defined as a person engaged in such rendering service. A person has been defined in CGST Act, 2017 as a Company, Firm, etc. No is no mention of Registered Person in the said provisions. A registered person is defined in CGST Act, 2017 as a person registered is a State. Therefore, in my view also a person being a Company or a firm can not opt for paying tax on reverse charge basis in a State, if it opts for paying tax on forward charge basis is another state. However, this view is subject to discussion and therefore further views are invited on this issue.
Reply By rajkumar shuk
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